Money Matters - Simplified

Nation on road to economic recovery: Obama

Obama said that the economy is showing signs of improvement, but people should not expect the job rates to grow anytime soon

Washington, September 20 -- In a latest interview aired on Sunday, President Barack Obama said that there are positive indicators that the country’s economy is beginning to recover. But he did add that there still may not be enough jobs created until next year.

Obama also said in the interview that it is up to Bernanke to state whether the recession is finally over or not.

In the interview with CNN’s “State of the Union”, Obama was quoted as saying, “I want to be clear, that probably the jobs picture is not going to improve considerably and it could even get a little bit worse over the next couple of months.”

He further added, “And we’re probably not going to start seeing enough job creation to deal with the rising population until some time next year.”

He said that in order to keep pace with the growth in population, 150,000 additional jobs need to be created each month.

Earlier this week, Federal Reserve Chairman Ben Bernanke had said that the worst U.S. recession since the Great Depression of the 1930s was “almost over” but the revival would be sluggish and it would take time to create new jobs.

Obama said that job figures will be the last thing that will improve. He said, “The problem is, we lost so many jobs that making up for those that have already been lost is going to require really high growth rates.”

Positive signs of economic growth
One of the encouraging signs that point towards the recovery of the country’s economy is that retail sales have increased at the fastest speed in 3-1/2 years in August. Also, the New York state manufacturing activity hit an almost two-year high.

Obama added that since the last month, the financial markets were picking up again and even manufacturing had improved considerably, in terms of production. “So all the signs are that the economy’s going to start growing again,” he said.

Obama trying to fix the harm done to his image
Over the past few weeks Obama has been highlighting the signs of a recuperating economy in a bid to boost his popularity, which has suffered a setback after the heated debate over his healthcare speech.

Obama will be leaving for Pittsburgh during the week to host the G-20 summit of the leading industrialized and developing economies. Developing a balanced economy would be an important topic of discussion there.

“That’s part of what the G-20 meeting in Pittsburgh is going to be about, making sure that there’s a more balanced economy,” Obama concluded.